Singapore stocks surge 2% as easing US inflation lifts markets
Sign up now: Get ST's newsletters delivered to your inbox
Local investors took their cue from a buoyant Wall Street overnight and sent the Straits Times Index rocketing 63.10 points.
PHOTO: ST FILE
Anita Gabriel
Follow topic:
SINGAPORE – The prospect of a halt to interest rate rises in the United States, on the back of lower inflation numbers there, turbocharged regional markets on Thursday.
Local investors took their cue from a buoyant Wall Street overnight and sent the Straits Times Index rocketing 63.1 points, or 2 per cent, to 3,238.46, with gainers trouncing losers 407 to 242 on robust trade of 2.14 billion shares worth $1.47 billion. Key regional bourses including those in Japan, China, Hong Kong, South Korea and Taiwan finished higher, but Malaysia bucked the trend by closing marginally lower. Australian shares enjoyed their best day in six months, rising 1.6 per cent.
The spark lay in US inflation figures, which came in softer than expected for June, suggesting that the series of interest rate hikes is moderating price pressures.
DBS Group Research noted: “We suspect that (US) Fed members will still maintain a hawkish rhetoric and deliver the last 25 basis-point hike, taking the terminal rate to 5.5 per cent for this cycle.
“However, it is clear that the hurdle for further hikes is high. A few more benign CPI (consumer price index) (reports) will put an end to further hike speculation (beyond July), even if the Fed will want to keep the option open.”
Offshore and marine giant Seatrium – as it has frequently been – was the day’s most active here, with 917 million shares done as the counter gained 2.1 per cent to 14.4 cents. Seatrium announced after markets closed on Wednesday that it secured a $1.1 billion green trade finance facility from OCBC to fund its sustainability efforts.
Thomson Medical Group climbed nearly 5 per cent to 6.4 cents after announcing on Wednesday that it plans to acquire healthcare facilities in Vietnam for about US$380 million (S$503.7 million). The counter resumed trading on Thursday following a trading halt pending the announcement. It was the day’s third-most-active counter, with 56 million shares changing hands. THE BUSINESS TIMES
